Your Real Estate Expert for Berkeley and Beyond
“Marilyn is exceptional. Her knowledge base, enthusiasm for her job, professional ethics, organization, sensitivity to our aesthetic requirements, loyalty and gentle perseverance set her apart.”
-- Bill and Carol Seidel
Marilyn Garcia, PhD Broker Associate, Realtor® CA DRE LICENSE #01355514
The Grubb Company 1656 Shattuck Avenue Berkeley, CA 94709
Direct: (510) 390-5406
THE OUTLOOK: North Berkeley & the Berkeley Hills, Q1 2024 wrap-up
THE OUTLOOK: North Berkeley & the Berkeley Hills, Q1 2024 wrap-up How is the market doing so far this year? It’s been mixed. Higher interest rates are definitely having an effect. Some properties are selling quickly with multiple offers, and others are not. In general, properties that are well-presented (with good preparation, good staging, and good marketing), and that are strategically priced compared to similar properties, are selling well. There are a good number of first-time buyers in the market, who typically shop for smaller/less expensive homes. There are also wealthy or high-income buyers, who can afford a purchase even [...]
REAL ESTATE ANSWERS: What’s changing in the real estate world?
What’s changing in the real estate world? There was a big lawsuit filed in Missouri in 2019, that focused on the way buyers’ agents are paid. A settlement agreement was reached last month, and it has been all over the news recently. What’s it all about? Sellers have long negotiated a total commission with their agents, and that commission has been shared between the listing (seller’s) agent and the agent representing the buyer of the property. This is all spelled out clearly in the listing agreement we use in California – it has a field for the total commission to [...]
COMPLETED SALES, North Berkeley, 1st Quarter 2024
Click HERE to see details and photos of properties SOLD in North Berkeley, 1/1/2024-3/31/2024. Note that, after you follow the link, you can click on each individual property to see photos and more details. Click "Close" near the top to return to the list. * For the purposes of this newsletter, “North Berkeley” is defined as the area bounded by University Avenue in the south, the line of Sacramento Street to the west, the Berkeley border to the north, and below Arlington Avenue, Los Angeles Avenue, and Spruce Street (south of Los Angeles) to the west.
COMPLETED SALES, Berkeley Hills, 1st Quarter, 2024
Click HERE to see details and photos of properties SOLD in the Berkeley Hills, 1/1/2024 - 3/31/2024. Note that, after you follow the link, you can click on each individual property to see photos and more details. Click "Close" near the top to return to the list. * For the purposes of this newsletter, “Berkeley Hills” refers to the area bounded as follows: north of campus, east of a line heading north on Spruce from campus, cutting over on Los Angeles to Arlington, and then north along Arlington to the Kensington border.
THE OUTLOOK: North Berkeley & the Berkeley Hills, Q1 2024 wrap-up
THE OUTLOOK: North Berkeley & the Berkeley Hills, Q1 2024 wrap-up
How is the market doing so far this year? It’s been mixed. Higher interest rates are definitely having an effect. Some properties are selling quickly with multiple offers, and others are not. In general, properties that are well-presented (with good preparation, good staging, and good marketing), and that are strategically priced compared to similar properties, are selling well. There are a good number of first-time buyers in the market, who typically shop for smaller/less expensive homes. There are also wealthy or high-income buyers, who can afford a purchase even at higher interest rates.
Move-up buyers—people who own a home now, but want to move to get more space—are rare these days. When move-up buyers do the math on a larger home, they see that a new home would be more expensive because of the extra space and higher property taxes; this is always true. Now, they would also likely be giving up a loan in the 3% range, for one at closer to 7%, which makes the extra cost of the larger home significantly higher. As a result, a lot of these potential buyers are not moving. This means that demand for the larger homes is lower, and it also means that there is less inventory of smaller “starter homes” for sale.
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Berkeley Hills, first quarter 2024 results:
The Berkeley hills had 53 active listings in the first quarter, and 32 properties sold. 6 of the sold properties had price changes before selling, and average time on the market was on the high side, at 38 days. 75% of the sales were above list price, and those that went over sold, on average, 32% above list price.
In the hills, the median sold price for the first quarter (Q1) was $1,750,617. This is down 10% from Q1 last year. Average sold price per square foot is basically unchanged from this time last year, though, at $900.
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North Berkeley, first quarter 2024 results:
North Berkeley has been doing quite well. The median sold price was $1,447,750 in North Berkeley for the first quarter (Q1) of 2024, which is up 3% from Q1 last year. Average sold price per square foot, at $1,014, is also up, by 9%.
There were only 16 active listings in North Berkeley, which is the lowest Q1 figure in my database, which goes back to the year 2000. With few properties on the market, only 12 properties sold, in an average of 19 days, and none of the sold properties needed price changes. 92% of the sales were above list price, and those that went over sold, on average, 19% above list.
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There are still multiple offers out there, especially for starter homes. At the same time, some good properties in the $2M-$3M range, especially those in the hills, are sitting longer on the market.
We’re all watching interest rates and the economic conditions that affect them closely. As long as the economy is performing pretty well, and inflation is still on the higher side, we’re unlikely to see significant rate cuts.
REAL ESTATE ANSWERS: What’s changing in the real estate world?
What’s changing in the real estate world?
There was a big lawsuit filed in Missouri in 2019, that focused on the way buyers’ agents are paid. A settlement agreement was reached last month, and it has been all over the news recently. What’s it all about?
Sellers have long negotiated a total commission with their agents, and that commission has been shared between the listing (seller’s) agent and the agent representing the buyer of the property. This is all spelled out clearly in the listing agreement we use in California – it has a field for the total commission to be paid, and a separate specific entry that says how much of that total will be paid to the buyer’s agent. The commission offered to the buyer’s agent has been a required field for any property entered into the Multiple Listing Service (MLS). The lawsuit argued in part that this requirement of compensation to the buyer’s agent in the MLS is an antitrust violation.
The settlement agreement has not yet been approved by the courts, but, if approved, it will lead to two changes in the way we do business. The first is that an offer of compensation to a buyer’s agent will no longer be a requirement for a listing to be in the MLS. Sellers can still pay the buyer’s agent, but that compensation will not be part of the MLS info. The second change is that there will always be a separate written agreement between buyers and the realtor® representing them.
The commission paid to the buyer’s agent can be paid by the seller, or by the buyer. This of course begs the question, why would a seller pay for a buyer to have representation?
The sale of a home is a huge and complicated transaction, involving large sums of money, and real estate is one of the most litigious sectors of the economy. As a seller, you don’t want the buyer to end up with buyer’s remorse, so it is extremely important that the buyer understands the process, and the property involved. This is the critical role of the buyer’s agent: not only to bring your property to the attention of buyers for whom it is a good fit and show it to them, but also to provide them with essential information and context about the property, the area, legal requirements, and local market conditions and values.
A smart seller will always want their buyer to have not only an agent, but a good agent. When a seller offers to pay the buyer’s agent’s compensation, they are (1) increasing the pool of possible buyers (because not all buyers will have the cash to cover the downpayment and closing costs, and also pay their agent); (2) increasing the odds that their escrow will close (because the buyer will have someone knowledgeable helping them understand the property and what the process and costs are, and shepherding them through the offer and escrow); and (3) reducing future risk.
COMPLETED SALES, North Berkeley, 1st Quarter 2024
Click HERE to see details and photos of properties SOLD in North Berkeley, 1/1/2024-3/31/2024.
Note that, after you follow the link, you can click on each individual property to see photos and more details. Click “Close” near the top to return to the list.
* For the purposes of this newsletter, “North Berkeley” is defined as the area bounded by University Avenue in the south, the line of Sacramento Street to the west, the Berkeley border to the north, and below Arlington Avenue, Los Angeles Avenue, and Spruce Street (south of Los Angeles) to the west.
COMPLETED SALES, Berkeley Hills, 1st Quarter, 2024
Click HERE to see details and photos of properties SOLD in the Berkeley Hills, 1/1/2024 – 3/31/2024.
Note that, after you follow the link, you can click on each individual property to see photos and more details. Click “Close” near the top to return to the list.
* For the purposes of this newsletter, “Berkeley Hills” refers to the area bounded as follows: north of campus, east of a line heading north on Spruce from campus, cutting over on Los Angeles to Arlington, and then north along Arlington to the Kensington border.
Your Real Estate Expert for Berkeley and Beyond
“Marilyn is exceptional. Her knowledge base, enthusiasm for her job, professional ethics, organization, sensitivity to our aesthetic requirements, loyalty and gentle perseverance set her apart.”
-- Bill and Carol Seidel
Marilyn Garcia, PhD Broker Associate, Realtor® CA DRE LICENSE #01355514
The Grubb Company 1656 Shattuck Avenue Berkeley, CA 94709
Direct: (510) 390-5406